In the old normal ("when we had an honest Fed," under Volcker), David Stockman explains to CNBC's Rick Santelli, "the market could judge what Congress and the White House was doing and decide where the risk/reward equation was and how to price the bond, the note, the bills," but in the new normal, "today, the market is entirely rigged." Stockman is no fan of deficits and as he notes "is no fan of money-printing," pointing out that "it's not honest," for the Fed to fund these chronically growing deficits and "created an unsustainably dangerous financial system." In thie brief interview, Stockman (of The Great Deformation fame) sums it up perfectly to a just-as-concerned Santelli, when he notes, "the error of central banking has become unversal." We're taxing the futures generations, he concludes, "they're going to thank you for the massive disaster that was handed to them." The honesty will never come...
"You have both parties in the military complex and we're still spending billions for defense.
So the honesty will be in the raising of taxes.
The honesty will come when you tell the middle class you're not going to get a tax cut - you're going to pay more.
Then they will wake up.
Then they will march on Washington and demand that we do something about the giant programs that are drifting today because everybody thinks the Fed will take care of the debt."
Well worth the price of admission: